Morgan Stanley followed up on a 15-month reorganization of its equities and fixed income groups by reorganizing again, this time to split up trading from the capital markets professionals who face clients and create new regional heads of the institutional securities business.

According to an internal memo obtained by Financial News, Morgan Stanley is creating a new group, called Institutional Securities Sales and Trading, which is to be run by new head of trading Neal Shear and new head of clients and services Jerker Johansson. Johansson's mandate also oversees sales.

Colm Kelleher, the head of global capital markets, will now report to both Johansson and head of investment banking Walid Chammah.

Cory Spencer will now be the US regional head of investment banking. Spencer still co-heads investment banking coverage with London-based Franck Petitgas, and before that was deputy head of investment banking, an administrative job under Chammah. Spencer briefly co-headed the investment banking division in 2005 after Tarek Abdel-Meguid left and later formed Perella Weinberg Partners.

Unrelated to the changes, Morgan Stanley lost its top-ranked semiconductor analyst, Mark Edelstone, to JP Morgan. Edelstone will make the switch to investment banking, and will be JP Morgan’s San Francisco-based global head of semiconductor investment banking coverage. Morgan Stanley’s semiconductor banking group has staffers in San Francisco, New York, London, Tel Aviv, Tokyo, Hong Kong and Beijing.